Market News
Hog futures pressured by lower pork values
At the Chicago Mercantile Exchange, live cattle closed mixed, and feeders were lower watching corn and waiting for direct business to develop. December live cattle closed $.10 higher at $132.20 and February live cattle closed $.42 lower at $136.70. November feeder cattle closed $.67 lower at $157.90 and January feeder cattle closed $.50 lower at $159.80.
It was a quiet Tuesday for direct cash cattle trade activity. There were a few bids to surface in parts of Nebraska at $130 live. Asking prices were firm at $132 to $134 live in the South, while the North was quiet. Buyers and sellers could be headed into another standoff, which would likely delay the bulk of the week’s business until later in the week.
At the Callaway Livestock Center in Missouri, compared to last week, steer calves 400 to 500 pounds were lightly tested, with 500-to-550-pound steer calves steady to firm, 550 to 600 pounds and 650 to 700 pounds were steady to $5 higher. Yearlings over 700 pounds sold with a firm to higher undertone. Feeder heifers 450 to 500 pounds were $3 to $6 higher and 500-to-600-pound heifers were steady to $3 higher with the most demand for heifers 550 to 600 pounds. Heifers over 600 pounds sold with a higher undertone. Calves 450 to 650 pounds were met with moderate to good demand with the best demand for yearlings over 650 pounds. Receipts were up on the week and down slightly on the year. Medium and Large 1 feeder steers 569 to 587 pounds brought $169 to $174 and feeder steers 650 to 682 pounds brought $160 to $169. Medium and Large 1 feeder heifers 561 to 587 pounds brought $150 to $158 and feeder heifers 650 to 673 pounds brought $154 to $164.
Boxed beef ended the day mixed with moderate to good demand for solid offerings. Choice closed $.85 lower at $287.80 and Select closed $2.02 higher at $270.62. The Choice/Select spread is $17.18. Estimated cattle slaughter is 122,000 head – even on the week and up 1,000 on the year.
Lean hog futures ended the day lower, pressured wholesale prices and the continued slide in the cash market. December lean hogs closed $1.42 lower at $74.95 and February lean hogs closed $.62 lower at $78.75.
Cash hogs closed lower with a big negotiated run. The industry is still keeping a close eye on the availability of market-ready barrows and gilts. Processors have been able to move their desired numbers at lower prices recently. While demand for US pork on the global market remains strong, there are some long-term concerns and that has been putting pressure on prices. Barrows and gilts at the National Daily Direct closed $.37 lower with a base range of $57 to $61.25 and a weighted average of $58.66; both the Iowa/Minnesota and the Western Corn Belt had a weighted average of $58.85. Prices at the Eastern Corn Belt were not reported due to confidentiality.
Butcher hog prices at the Midwest cash markets are steady at $60. At Illinois, slaughter sow prices were $1 to $3 higher with good demand for heavy offerings at $58 to $68. Barrows and gilts were mostly $1 lower with moderate demand for light offerings at $35 to $42. Boars ranged from $15 to $25 and $10 to $20.
Pork values closed lower – down $2.31 at $92.55. Bellies and loins were sharply lower. Butts, hams, and picnics were lower. Ribs were higher. Estimated hog slaughter is 478,000 head – down 1,000 on the week and down 13,000 on the year. Monday’s hog slaughter has been revised to 467,000 head.
